The USDA said Tuesday that although beef and pork prices are expected to rise again this year, the increases will not be nearly as severe as last year. The monthly Food Price Outlook reported that beef and pork prices would rise by 3.5% for the year, and that “Upward pressures on meat prices are expected to ease in the latter half of 2022.”
Last year, beef prices in supermarkets rose 9.3% and pork prices rose 8.6%. This is far higher than the average annual increases of 4.4% and 2.2% for beef. The second consecutive year of higher-than average food inflation was caused by persistently high meat prices. This is due to strong demand and COVID-19 epidemics at packing plants. USDA data shows that meat accounts for more than $1 in every $5 of grocery spending.
USDA economists predict that overall food inflation will return to the 2.5% level this year, as compared to its long-term average. Aside from meat, they said, “Price increases are expected to more closely align with 20-year averages for most other food groups.”
Source: Successful Farming
